EXHIBIT 10.2
03/24/95
Basic Plan Document # 05
Plan # 002
IRS Letter Serial No.: D363689a
PRISM(R) PROTOTYPE RETIREMENT PLAN & TRUST
401(k) Profit Sharing Plan
(Nonstandardized)
Adoption Agreement
The Employer , designated below, hereby establishes a profit-sharing
plan (optionally including a cash or deferred arrangement (as defined in
ss.401(k) of the Internal Revenue Code)) for all Eligible Employees as
defined in this Adoption Agreement pursuant to the terms of the PRISM(R)
Prototype Retirement Plan & Trust Basic Plan Document # 05.
A. Employer Information:
1. Name: M.D.C. Holdings, Inc.
---------------------
2. Address: 0000 Xxxxx Xxxxxxxx Xxxxxx, Xxxxx 000
-------------------------------------
3. Address: Denver, CO 80237
------------------
4. Attention: Xxxxxxx Xxxxxx Telephone: 000-000-0000
-------------- ------------
5. Employer Taxpayer Identification Number : 00-0000000
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B. Basic Plan Provisions:
1. Plan Name (select one):
This plan is established effective , (the "Effective
Date") as a profit sharing plan (optionally with a
cash or deferred arrangement as defined in Code
ss.401(k)) to be known as (the "Plan") in the form of
the PRISM(R) Prototype Retirement Plan & Trust.
b. This plan is an amendment and restatement in the form
of the PRISM(R) Prototype Retirement Plan & Trust,
effective 07/01/98, (the "Effective Date") of the
M.D.C. Holdings, Inc. 401(k) Savings Plan (the
"Plan"), originally effective as of 01/01/92 (the
"Original Effective Date").
2. Employers Three Digit Plan Number: 004
3. Committee Members : Xxxxx X. Xxxxx XXX, Xxxxxx X. Xxxxx,
Xxxxxx X. Xxxxxxx, Xxxxx X. Xxxxxx,
Xxxxxx X.Xxxxxx
4. Definitions:
a. Compensation for allocation purposes:
i Will be determined over the following
applicable period (select only one):
(a) X the Plan Year
---
(b) the period of Plan participation
--- during the Plan Year
(c) a consecutive 12 month period
--- commencing on and ending with, or
within, the Plan Year.
ii X If selected, Compensation will
--- include Employer contributions made
pursuant to a Salary Reduction
Agreement, or other arrangement,
which are not includible in the
gross income of the Employee under
ss.ss.125, 402(e)(3), 402(h)(1)(B)
or 403(b)of the Internal Revenue
Code.
iii Shall not include (select as many as
desired):
(a) Bonuses
---
(b) Commissions
---
(c) Taxable fringe benefits identified
--- below:
(d) X Other items of remuneration
--- identified below: Reimbursements
and other expense allowances
including fringe benefits, moving
expenses, deferred compensation
and welfare benefits.
iv Shall be limited to $ , which shall
--- be the maximum amount of
compensation considered for plan
allocation purposes (but not for
testing purposes), and may not be an
amount in excess of the Internal
Revenue Codess.401(a)(17) limit in
effect for the Plan Year. If no
amount is specified, Compensation
shall be limited to the Internal
Revenue Codess.401(a)(17)
amount, as
adjusted by the Secretary of the
Treasury from time to time.
b. Early Retirement Date:
i is not applicable to this Plan
---
ii X is the latter of the date on
--- which the Participant attains age
55 (not less than 55) and the
date on which the Participant
completes 5 Years of Service.
c. Hour of Service shall be determined on the basis
of the method selected below. Only one method may
be selected. The method shall be applied to all
Employees covered under the Plan as follows
(select only one):
i X On the basis of actual hours for
--- which an Employee is paid, or
entitled to be paid.
ii On the basis of days worked. An
--- Employee shall be credited with
ten (10) Hours of Service if
under ss.1.1(U) of the Plan such
Employee would be credited with
at least one (1) Hour of Service
during the day.
iii On the basis of weeks worked. An
--- Employee shall be credited with
forty-five (45) Hours of Service
if under ss.1.1(U) of the Plan
such Employee would be credited
with at least one (1) Hour of
Service during the week.
iv On the basis of semi-monthly
--- payroll periods. An Employee
shall be credited with
ninety-five (95) Hours of Service
if under ss.1.1(U) of the Plan
such Employee would be credited
with at least one (1) Hour of
Service during the semi-monthly
payroll period.
v On the basis of months worked. An
--- Employee shall be credited with
one hundred ninety (190) Hours of
Service if under ss.1.1(U) of the
Plan such Employee would be
credited with at least one (1)
Hour of Service during the month.
d. Limitation Year shall mean the 12 month period
commencing on January 1 and ending on
December 31.
e. Normal Retirement Date for each Participant
shall mean (select one):
i X the date the Participant attains
--- age: 65 (not to exceed 65)
ii the latter of the date the
--- Participant attains age (not to
exceed 65) or the (not to exceed
5th) anniversary of the
participation commencement date.
If for the Plan Years beginning
before January 1, 1988, Normal
Retirement Date was determined
with reference to the
anniversary of the participation
commencement date (more than 5
but not to exceed 10 years), the
anniversary date for Participants
who first commenced participation
under the Plan before the first
Plan Year beginning on or after
January 1, 1988 shall be the
earlier of (A) the tenth
anniversary of the date the
Participant commenced
participation in the Plan (or
such anniversary as had been
elected by the employer, if less
than 10) or (B) the fifth
anniversary of the first day of
the first Plan Year beginning on
or after January 1, 1988.
Notwithstanding any other
provisions of the Plan, the
participant commencement date is
the first day of the first Plan
Year in which the Participant
commenced participation in the
Plan.
f. Permitted Disparity Level, for purposes of
allocating Employer Contributions, shall mean
(select only one):
i X Not applicable - the Plan does
--- not use permitted disparity.
ii The Taxable Wage Base, which is
--- the contribution and benefit base
under section 230 of the Social
Security Act at the beginning of
the year.
iii % (not greater than 100%) of
--- the Taxable Wage Base as defined
in B(4)(f)(ii) above.
iv $ , provided that the amount does
--- not exceed the Taxable Wage Base
as defined in B(4)(f)(ii) above.
g. Plan Year shall mean (select and complete only
one of the following):
i The 12-consecutive month period
--- which coincides with the
Limitation Year. The first Plan
Year shall be the period
commencing on the Effective Date
and ending on the last day of the
Limitation Year.
ii The 12-consecutive month period
--- commencing on, , 19, and each
annual anniversary thereof.
iii X The calendar year (January 1
--- through December 31).
h. Qualified Distribution Date, for purposes of
making distributions under the provisions of a
Qualified Domestic Relations Order (as defined in
Internal Revenue Code ss.414(p)), X shall be the
date the order is determined to be qualified. If
shall is selected, the Alternate Payee will be
entitled to an immediate distribution of benefits
as directed by the Qualified Domestic Relations
Order. If shall not is selected, the Alternate
Payee may only take a distribution on the
earliest date that the Participant is entitled to
a distribution.
i. Spouse:
If selected, Spouse shall mean
only that person who has actually
been the Participants spouse for
at least one year.
j. Year of Service shall mean:
i For eligibility purposes (select one of the
following):
(a) the 12 consecutive months
--- during which an Employee is
credited with (not more
than 1000) Hours of
Service.
(b) X a Period of Service (using
--- the elapsed time method
of counting Service, as
described in ss.1.1(N)(3)
of the Plan).
ii For allocation accrual purposes (select one
of the following):
(a) X the 12 consecutive months
--- during which an Employee is
credited with 1000 (not
more than 1000) Hours of
Service.
(b) a Period of Service (using
--- the elapsed time method
of counting Service, as
described in ss.1.1(N)(3)
of the Plan).
iii For vesting service purposes (select one of
the following):
(a) the 12 consecutive months
--- during which an Employee is
credited with (not more
than 1000) Hours of
Service.
(b) X a Period of Service (using
--- the elapsed time method
of counting Service, as
described in ss.1.1(N)(3)
of the Plan).
iv For purpose of computing Years of Service in
plans where Year of Service is defined in
terms of Hours of Service), the consecutive
12 month period shall be:
(a) For eligibility purposes, the first Year
of Service shall be computed using the
12 month period commencing on the
Employee's date of hire and ending on
the first annual anniversary of the
Employee's date of hire (the "Initial
Computation Period"). In the event an
employee does not complete an
eligibility Year of Service during this
initial computation period, the
computation period shall be (select only
one):
(1) X the period commencing
--- on each annual
anniversary of the
Employee's date of
hire and ending on the
next annual
anniversary of the
Employee's date of
hire.
(2) the Plan Year,
--- commencing with the
Plan Year in which the
Initial Computation
Period ends.
(b) For vesting purposes, Years of Service
shall be computed on the basis of:
(1) X the period commencing
--- on each annual
anniversary of the
Employee's date of
hire and ending on the
next annual
anniversary of the
Employee's date of
hire.
(2) the Plan Year,
--- commencing with the
first Plan Year an
Employee completes an
Hour of Service.
(c) For allocation accrual purposes, Year of
Service shall be computed on the basis
of the Plan Year.
v X For eligibility purposes, Years
--- of Service with the following
Predecessor Employers shall
count in fulfilling the
eligibility requirements for
this Plan: any predecessor
organization if the Employer
maintains the Plan of the
predecessor employer.
vi X For vesting purposes, Years of
--- Service with the following
Predecessor Employers shall
count for purposes of
determining the nonforfeitable
amount of a Participant's
account: any predecessor
organization if the Employer
maintains the Plan of the
predecessor employer.
5. Coverage:
This Plan is extended by the Employer to the following
Employees who have met the eligibility requirements
(select as many as appropriate):
i All Employees
---
ii Salaried Employees
---
iii Sales Employees
---
iv Hourly Employees
---
v Leased Employees
---
vi X All Employees except (select as
--- applicable):
(a) X those who are members
--- of a unit of Employees
covered by a collective
bargaining agreement
between the
Employer and Employee
representatives, if
retirement benefits
were the subject of
good faith bargaining
and if two percent or
less of the Employees
who are covered
pursuant to that
agreement are
professionals as
defined in Section
1.410(b)-9 of the
Regulations. For this
purpose, the term
Employee representative
does not include any
organization more than
half of whose members
are Employees who are
owners, officers, or
executives of the
Employer.
(b) X those who are
--- nonresident aliens
(within the
meaning of
Internal Revenue
Code
ss.7701(b)(1)(B))
and who receive no
earned income
(within the
meaning of
Internal Revenue
Code ss.911(d)(2))
from the Employer
which constitutes
income from
sources within the
United States
(within the
meaning of
Internal Revenue
Code
ss.861(a)(3)).
vii Union Employees (who are
--- members of the following unions
or union affiliates):
vii Other Employees, described as
--- follows:
6. Eligibility:
An Employee covered by the Plan may become a Participant
upon completion of the following eligibility requirements:
a. Service:
i There shall be no minimum
--- service requirement for an
Employee to become a
Participant.
ii X The Employee must complete 6
--- Months of Service (not more
than 2 years) to be a
Participant for purposes of
receiving allocations of
Employer Profit Sharing
Contributions.
b. Age:
i There shall be no minimum age
--- requirement for an Employee to
become a Participant.
ii X The Employee must attain age 21
--- (not more than 21) to be a
Participant in the Plan.
c. Waiver of Age and Service Requirements:
i Notwithstanding the provisions
--- of Items B(6)(a) and (b),
Employees who have not
satisfied the age and service
requirements, but would
otherwise be eligible to
participate in the plan, shall
be eligible to participate on
the Effective Date.
ii For new Plans, notwithstanding
--- the provisions of Items B(6)(a)
and (b), Employees who have not
satisfied the age and service
requirements, but would
otherwise be eligible to
participate in the plan, shall
be eligible to participate on
the Effective Date.
d. Entry Dates:
Upon completion of the eligibility requirements,
an Employee shall commence participation in the
Plan (select only one):
i As soon as practicable under
--- the payroll practices utilized
by the Employer, and
consistently applied to all
Employees, or if earlier, the
first day of the Plan Year.
ii As of the first day of the
--- month following the completion
of the eligibility requirements.
iii X As of the earliest of the first
--- day of the Plan Year, fourth,
seventh or tenth month of the
Plan Year next following
completion of the eligibility
requirements.
iv As of the earliest of the first
--- day of the Plan Year or seventh
month of the Plan Year next
following completion of the
eligibility requirements.
v As of the first day of the Plan
--- Year next following completion
of the eligibility requirements
(may only be selected if the
eligibility year of service
requirement is 6 months or
less).
7. Vesting:
a. The percentage of a Participant's Employer
Contribution Account (attributable to Employer
Profit Sharing Contributions) to be vested in him
or her upon termination of employment prior to
attainment of the Plan's Normal Retirement Date
shall be:
Completed Years of Service
1 2 3 4 5 6 7
------- ------- ------- ------- ------- ------- ----
0% 100%
-- ----
0% 0% 100%
-- -- ----
0% 20% 40% 60% 80% 100%
-- --- --- --- --- ----
0% 0% 20% 40% 60% 80% 100%
-- -- --- --- --- --- ----
10% 20% 30% 40% 60% 80% 100%
--- --- --- --- --- --- ----
X 0% 40% 60% 80% 100%
-- --- --- --- ----
0% 0% 0% 0% 0% 0% 100%
-- -- -- -- -- -- ----
Full and immediate vesting upon entry into the Plan
Notwithstanding anything to the contrary in the
Plan, the amount inserted in the blanks above
shall not exceed the limits specified in Code
ss.411(a)(2).
b. For purposes of computing a Participant's vested
account balance, Years of Service for vesting
purposes X shall include Years of Service before
the Employer maintained this Plan or any
predecessor plan, and X shall not include Years
of Service before the Employee attained age 18.
c. Notwithstanding the provisions of this Item
B(7)(c) of the Adoption Agreement, a Participant
shall become fully vested in his Participant's
Employer Contribution if:
i the Participant's job is
--- eliminated without the
Participant being offered a
comparable position elsewhere
with the Employer.
ii for such reason as is described
--- below:
8. Employer Profit Sharing Contributions:
a. Contributions:
i X In its discretion, the Employer
--- may contribute Employer Profit
Sharing Contributions to the
Plan.
ii The Employer shall contribute
--- Employer Profit Sharing
Contributions to the Plan in
the amount of % of the
Compensation of all Eligible
Participants under the Plan.
iii X If selected, the Employer may
--- make Employer Profit Sharing
Contributions without regard to
current or accumulated Net
Profits of the Employer for the
taxable year ending with, or
within the Plan Year.
iv X If selected, the Employer may
--- designate all or any part of
the Employer Profit Sharing
Contributions as Qualified
Nonelective Contributions,
provided, however, that
contributions so designated
will be subject to the same
vesting, distribution, and
withdrawal restrictions as
Before Tax Contributions .
b. Allocations:
Employer Profit Sharing Contributions shall be
allocated to the accounts of eligible
Participants according to the following selected
allocation formula:
i X The Employer Profit Sharing
--- Contributions shall be
allocated to each eligible
Participant's account in the
ratio which the Participant's
Compensation bears to the
Compensation of all eligible
Participants. Employer Profit
Sharing Plan Contributions,
shall be allocated to the
accounts of Participants who
have completed a Year of
Service (select one):
(a) as of the last
--- day of the month
preceding the month
in which the
contribution was made.
(b) as of the last day of
--- the Plan quarter
preceding the quarter
in which the
contribution was made.
(c) X as of the last day of
--- the Plan Year.
The Employer Profit Sharing Contributions
shall be allocated in accordance with the
following formula:
(a) If the Plan is Top-Heavy,
the contribution shall be
first credited to each
eligible Participant's
Account in the ratio which
the Participant's
Compensation bears to the
total Compensation of all
eligible Participants, up
to 3% of each Participant's
Compensation.
(b) If the Plan is Top-Heavy,
any Employer Profit Sharing
Contribution remaining
after the allocation in (a)
above shall be credited to
each eligible Participant's
account in the ratio which
the Participant's Excess
Compensation bears to
the total Excess
Compensation of all
eligible Participants, up
to 3% of each eligible
Participant's Excess
Compensation.
(c) Any contributions remaining
after the allocation in (b)
above shall be credited to
each eligible Participant's
account in the ratio which
the sum of the
Participant's total
Compensation and Excess
Compensation bears to the
sum of the total
Compensation and Excess
Compensation of all
eligible Participants, up
to an amount equal to the
maximum Excess Percentage
times the sum of the
Participant's Compensation
and Excess Compensation. If
the Plan is Top-Heavy, the
maximum Excess Percentage
is N/A % (insert
percentage). If the Plan is
not Top-Heavy, the maximum
Excess Percentage is N/A %
(insert percentage, which
shall not exceed the prior
Excess Percentage
limitation specified by
more than 3).
Note: If the Permitted Disparity
Level defined at Item
B(4)(f) is the Taxable Wage
Base (which is the
contribution and benefit
base under section 230 of
the Social Security Act at
the beginning of the year),
then the maximum Excess
Percentage should be 2.7%
if the Plan is Top-Heavy
and 5.7% if the Plan is not
Top-Heavy.
If the Permitted Disparity
Level defined at Item
B(4)(f) is greater than 80%
but less than 100% of the
Taxable Wage Base, then the
maximum Excess Percentage
should be 2.4% if the Plan
is Top-Heavy and 5.4% if
the Plan is not Top-Heavy.
If the Permitted Disparity
Level defined at Item
B(4)(f) is greater than the
greater of $10,000 or 20%
of the Taxable Wage Base,
but not more than 80%, then
the maximum Excess
Percentage should be 1.3%
if the Plan is Top-Heavy
and 4.3% if the Plan is not
Top-Heavy.
(d) Any remaining Employer
Profit Sharing Contribution
shall be allocated among
eligible Participants'
accounts in the ratio which
the Participant's
Compensation bears to the
total Compensation of all
Participants.
iii X If selected, and the Employer
--- has elected to allocate
Employer Profit Sharing Plan
Contributions as of the last
day of the Plan Year, a
Participant must be employed by
the Employer on the last day of
the Plan Year in order to
receive an allocation .
iv X A Participant who terminates
--- before the end of the period
for which contributions are
allocated shall share in the
allocation of Employer Profit
Sharing Contributions if
termination of employment was
the result of (select all that
apply):
(a)_X_ retirement
---
(b) X disability
---
(c) X death
---
(d) X other, as
--- specified
below: Other
termination of
employment
from the
company on
account of a
Change of
Control, as
defined in the
addendum
attached
hereto.
9. Rollover & Transfer Contributions (select one):
a. X Subject to policies, applied in a
--- consistent and nondiscriminatory manner,
adopted by the Committee, each Employee,
who would otherwise be eligible to
participate in the Plan except that such
Employee has not yet met the eligibility
requirements, and each Participant may
make a Rollover Contribution as
described in Internal Revenue Code
ss.ss.402(a)(5), 403(a)(4) or 408(d)(3).
(b) Subject to policies, applied in a
--- consistent and nondiscriminatory manner,
adopted by the Committee, each
Participant may make a Rollover
Contribution as described in Internal
Revenue Code ss.ss.402(a)(5), 403(a)(4)
or 408(d)(3).
(c) No Employee shall make Rollover
--- Contributions to the Plan.
10. Distributions:
a. Distributions Upon Separation from Service:
The Normal Form of Benefit under the Plan shall
be a single lump sum distribution, made as soon
as administratively practical after receipt of a
distribution request from a Participant entitled
to a distribution or upon
the Participant's
attainment of the Plan's Early Retirement Date or
the Plan's Normal Retirement Date, whichever is
earlier.
In addition to the Normal Form of Benefit, the
Participant shall be entitled to select from
among the following optional forms of benefit
specified by the employer (select as many as
apply):
i. Installment payments
---
ii X Such other forms as may be
--- specified below: Joint &
Survivor Annuity, or an
annuity, provided that the
annuity that provides for
payments not extending beyond
the life expectancy of the
Participant, the joint life
expectancy of the Participant
and a designated Beneficiary,
or for a period certain not
extending beyond the life
expectancy of the Participant,
the joint life expectancy of
the Participant and a
designated Beneficiary or the
combination of an annuity and
a single lump sum
b. In-Service Distributions (select as may be
appropriate):
i There shall be no in-service
--- distribution of Participant
account balances derived from
Employer Profit Sharing
Contributions.
ii X Participants may request an
--- in-service distribution of
their account balance
attributable to Employer Profit
Sharing Contributions, for the
following reasons:
(a) X For purposes of
--- satisfying a
financial hardship,
as determined in
accordance with
the uniform
nondiscriminatory
policy of the
Committee;
(b) X Attainment of age
59 1/2 by the
Participant; or
(c Attainment of the
--- Plan's Normal
Retirement Date by
the Participant.
11. Forfeitures:
a. Forfeitures of amounts attributable to Employer
Profit Sharing Contributions shall be reallocated
as of:
i X the last day of the Plan Year
--- in which the Forfeiture
occurred.
ii the last day of the Plan Year
--- following the Plan Year in
which the Forfeiture occurred.
iii the last day of the Plan Year
--- in which the Participant
suffering the Forfeiture has
incurred five consecutive One
Year Breaks in Service.
b. Forfeitures of Employer Profit Sharing Contributions
shall be reallocated as follows:
i Not applicable as Employer
--- Profit Sharing Contributions
are always 100% vested and
nonforfeitable.
ii X Used first to pay the expenses
--- of administering the Plan, and
then allocated pursuant to one
of the following two options
:
iii Forfeitures shall be allocated
--- to Participant's accounts in
the same manner as Employer
Profit Sharing Contributions,
Employer Matching
Contributions, Qualified
Nonelective Contributions or
Qualified Matching
Contributions, in the
discretion of the Employer, for
the year in which the
Forfeiture arose.
iv X Forfeitures shall be applied to
--- reduce the Employer Profit
Sharing Contributions, Employer
Matching Contributions,
Qualified Nonelective
Contributions or Qualified
Matching Contributions, in the
discretion of the Employer, for
the Plan Year following the
Plan Year in which
the Forfeiture arose.
12. Limitations on Allocations:
If the Employer maintains or ever maintained another
qualified retirement plan in which any Participant in this
Plan is (or was) a participant, or could possibly become a
participant, the Employer must complete the following:
a. If the Participant is covered under another
qualified defined contribution plan maintained by
the Employer other than a Master or Prototype
Plan:
i X The provisions of this Plan
--- shall apply as if the other
plan were a Master or Prototype
plan; or,
ii The following provisions will
--- be effective to limit the total
Annual Additions to the Maximum
Permissible Amount, and will
properly reduce any Excess
Amounts, in a manner that
precludes Employer discretion:
b. If the Participant is or ever has been a
participant in a qualified defined benefit plan
maintained by the Employer, the following
provisions will be effective to satisfy the 1.0
limitation of Internal Revenue Code ss.415(e), in
a manner that precludes Employer discretion:
13. Internal Revenue Code ss.411(d)(6) Protected Benefits:
If selected, the Plan has Internal Revenue
Code ss.411(d)(6) Protected Benefits from a
prior plan that this Plan amends, that must
be protected.
(Attach addendum)
14. Top-Heavy Plan Provisions:
For each Plan Year in which the Plan is a Top-Heavy Plan
the following provisions will apply:
a. The percentage of a Participant's Employer
Contribution Account to be vested in him upon
termination of employment prior to retirement
shall be:
i. a percentage determined in
--- accordance with the following
schedule:
Years of Service Percentage
---------------- ----------
Less than two 0
Two but less than three 20
Three but less than four 40
Four but less than five 60
Five but less than six 80
Six or more 100;
ii. 100% vesting after (not to
--- exceed 3) Years of Service;
provided, however, that Years
of Service may not exceed two
(2) if the service requirement
for eligibility exceeds 1 year;
or
iii. X computed in accordance with the
--- vesting schedule selected by
the Employer in Items B(7)(a)
or C(4)(d), as long as the
benefits under the vesting
schedule in Items B(7)(a) or
C(4)(d) vest at least as
rapidly as the two options
specified in this Item
B(14)(a), above.
If the vesting schedule under the Plan shifts in
or out of the schedules above for any Plan Year
because of the Plan's Top-Heavy status, such
shift is an amendment to the vesting schedule and
the election in ss.2.2 of the Basic Plan Document
applies.
b. For purposes of minimum Top-Heavy allocations,
contributions and forfeitures equal to 3 % (not
less than 3%) of each Non-key Employee's
Compensation will be allocated to each
Participant's Contribution Account when the Plan
is a Top-Heavy Plan, except as otherwise provided
in the Basic Plan Document. This Item 14 will
not apply to any Participant to the extent the
Participant is covered under any other plan or
plans of the Employer and the Employer completes
the following: (Insert the name of the plan
or plans which will meet the minimum allocation
or benefit requirement applicable to
Top-Heavy plans.)
c. The Valuation Date as of which account balances
or accrued benefits are valued for purposes of
computing the Top-Heavy Ratio shall be the last
day of each Plan Year.
d. If the Employer maintains or has ever maintained
one or more defined benefit plans which have
covered or could cover a Participant in this
Plan, complete the following:
Present Value: For purposes of establishing
Present Value to compute the Top-Heavy Ratio, any
benefit shall be discounted only for mortality
and interest based on the following:
Interest rate: % Mortality table:
15. Investments:
a. Investments made pursuant to the investment
direction provisions of the Basic Plan Document
shall be made into any appropriate Investment
Fund as selected by the Employer. In addition,
investment of Plan assets is expressly
authorized, as required by Revenue Ruling 81-100,
in each of the following common or collective
funds sponsored by the Trustee, or an affiliate
of the Trustee :
Key Trust EB Managed Guaranteed Income
Contract Fund, Key Trust Multiple Investment
Trust for Employee Benefit Trusts, and other
collective trusts exempt from tax under IRC
ss.501 and as described in Rev. Rul. 81-100.
b. X If selected, an Employer Stock Fund shall be
--- available as an Investment Fund pursuant to the
terms of the Basic Plan Document.
i. If selected, and an Employer
--- Stock Fund is available as an
Investment Fund, Participants
will have the right,
notwithstanding any other
provisions of the Plan, to
direct that a portion of the
Plan assets held for their
benefit and invested in the
Employer Stock Fund be
diversified pursuant to the
provisions of ss.10.7(F) of the
Basic Plan Document.
c. Participants may make changes of existing account
balances and future contributions from among the
Investment Funds offered:
i. X Once during each business
--- day that the Trustee and
the New York Stock
Exchange are open.
ii. Once during each calendar
--- month.
iii Once during each quarter
--- of the Plan Year.
iv. Once during each rolling
--- day period.
d. If selected, the Participant shall be
--- restricted in making changes of existing
account balances from any Investment Fund,
as specified in the terms or conditions of
such Investment Fund, and the Employer shall
attach an addendum specifying such
restriction.
e. The Participant will designate into which
Investment Funds all contributions to their
accounts are made, except the following:
i. Employer Profit Sharing
--- Contributions
ii. Employer Mandatory
--- Matching Contributions
iii. Employer Discretionary
--- Matching Contributions
iv. Qualified Matching
--- Contributions
v. Qualified Nonelective
--- Contributions
f. If selected, and to the extent a selection
--- is made above, the Employer shall attach an
Investment Direction Addendum specifying how
the contributions so specified shall be
invested among the Investment Fund.
g. If selected, the Participant shall be
--- restricted in the use of the Employer Stock
Fund as an Investment Fund for designating
the investment of contributions in the
Participant's account, as follows:
i. The Participant may not direct the
---investment of Plan assets held in their
account into the Employer Stock Fund.
ii. The Participant may direct -- % of the
---following contributions into the
(a) Employer Stock Fund:
---
(b) Employer Profit
--- Sharing Contributions
(c) Employer Mandatory
--- Matching Contributions
(d) Employer Discretionary
--- Matching Contributions
(e) Qualified Matching
--- Contributions
(f) Qualified Nonelective
--- Contributions
iii. % of the above referenced
--- contributions will be invested
into the Employer Stock Fund,
with the balance invested among:
(a) the other Investment
--- Funds, including the
Employer Stock Fund
(b) the other Investment
--- Funds, not including
the Employer Stock
Fund
16. Loans (select one):
a. X Loans may be made from the Plan in
--- accordance with the Basic Plan Document and
such policies and procedures as the
Committee may adopt and apply on a
consistent and nondiscriminatory basis.
b. No loans shall be made from the Plan.
---
17. Trustee:
The Trustee of this Plan shall be KeyTrust Company
National Association (a bank or trust company affiliated
with KeyCorp within the meaning of Internal Revenue Code
ss.1504).
18. Effective Date Addendum:
If selected, the following provisions shall have the
specified effective dates (which are different from the
date specified in Item B(1)):
C. ss.401(k) Plan Provisions:
1. Service:
An Eligible Employee shall be required to fulfill the
following eligibility service requirements in order to
participate in the Plan through a salary reduction
agreement and for purposes of receiving an allocation of
Employer Matching Contributions:
a. X The Employee must complete 6 Months of
--- Service (not more than 1 year) to be a
Participant for purposes of receiving
allocations of Employer Matching
Contributions.
b. X The Employee must complete 6 Months of
--- Service (not more than 1 year) to be a
Participant for purposes of entering into a
Salary Reduction Agreement and having
Employee Before Tax Contributions or
Employee After Tax Contributions contributed
to the Plan on the Employee's behalf.
2. Employee Salary Deferrals:
a. Participants shall be entitled to enter into a Salary
Reduction Agreement providing for Before Tax Contributions
to be made to the Plan.
i. X The minimum Before Tax
--- Contribution shall be 1 % of the
Participant's Compensation.
ii. X The maximum Before Tax
--- Contribution shall be 15 % of
the Participant's Compensation.
b. Participants shall be entitled to enter into a Salary
Reduction Agreement providing for After Tax Contributions
to be made to the Plan.
i. The minimum After Tax
--- Contribution shall be % of the
Participant's Compensation.
ii. The maximum After Tax
--- Contribution shall be % of the
Participant's Compensation.
iii. If selected, notwithstanding the
--- above, a Participant shall not
be able to enter into a Salary
Reduction Agreement providing
for After Tax Contributions to
be made to the Plan unless the
Participant has entered into a
Salary Reduction Agreement that
provides for Before Tax
Contributions to be made to the
Plan in an amount of at least
% of the Participant's
---- Compensation.
c. If selected, a Participant shall be entitled
--- to enter into a Salary Reduction Agreement
providing that any extraordinary item of
compensation, not yet payable (including
bonuses), be withheld from the
Participant's Compensation and contributed
to the Plan as either a Before Tax
Contribution, or After Tax Contribution
(provided such contributions are authorized
above, and to the extent that such
contribution, when aggregated with either
the Participants other Before Tax
Contributions or After Tax Contributions
do not exceed the limitations
specified above, on an annual basis).
3. Contribution Changes:
a. Participants may increase or decrease the
amount of contributions made to the Plan
pursuant to a Salary Reduction Agreement
once each:
i. Plan Year
---
ii Semi-annual period, based on
--- the Plan Year
iii. X Quarter, based on the Plan Year
---
iv Month
---
v Other, as specified below
--- (provided that it is at least
once per year):
b. Claims for returns of Excess Before Tax
Contributions for the Participant's preceding
taxable year must be made in writing, and
submitted to the Committee by March 15 (specify a
date between March 1 and April 15).
4. Employer Matching Contributions :
a. Mandatory Matching Contributions:
The Employer shall make contributions to the
Plan, in an amount as specified below:
i. An amount, equal to % of each
--- Participant's Before Tax
Contributions, however, no match
shall be made on Participants
Before Tax Contributions in
excess of % (or $ ) of the
Participant's Compensation.
ii. An amount, equal to % of each
--- Participant's After Tax
Contributions, but not to exceed
% of the Participant's
Compensation, or $ .
iii An amount, equal to % of each
--- Participant's contributions made
pursuant to a Salary Reduction
Agreement (including both Before
Tax Contributions and After Tax
Contributions), but only if the
Participant has entered into a
Salary Reduction Agreement
providing for Before Tax
Contributions of at least % of
the Participant's Compensation,
but not to exceed % of the
Participant's Compensation,
or $ .
iv An amount equal to the sum of the
--- following:
(a) % of the first % of the
Participant's Compensation
deferred pursuant to a
Salary Reduction
Agreement; plus,
(b) % of the next % of the
Participant's Compensation
deferred pursuant to a
Salary Reduction
Agreement; plus,
(c) % of the next % of the
Participant's Compensation
deferred pursuant to a
Salary Reduction
Agreement, but not to
exceed % of the
Participant's
Compensation, or $ .
v. An amount equal to $ , for
--- each Participant who enters
into a Salary Reduction
Agreement providing for Before
Tax Contributions, After Tax
Contributions, or either Before
Tax Contributions or After Tax
Contributions (or a combination
of both) equal to or exceeding
% of the Participant's
Compensation. Such
contributions shall be made and
allocated:
(a) only during
---- the first Plan
Year the Plan
is in effect,
or if a
restatement,
for the first
Plan Year
beginning
with, or
containing the
re-statement
Effective
Date.
(b) each Plan Year
---- that a
Participant
has in force a
Salary
Reduction
Agreement
meeting the
criteria
specified
above.
(c) during the
---- first Plan
Year that the
Participant
participates
through a
Salary
Reduction
Agreement
meeting the
criteria
specified
above.
b. Discretionary Matching Contributions:
X The Employer shall make contributions to
--- the Plan, in an amount determined by
resolution of the Board of Directors on
an annual basis. The Board resolution
shall provide for the percentage and/or
amount of Before Tax Contributions
and/or After Tax Contributions to be
matched and the maximum percentage
and/or amount of Before Tax
Contributions and/or After Tax
Contributions eligible for matching.
c. Allocation of Matching Contributions:
Employer Matching Contributions shall be
allocated pursuant to the terms of the Basic Plan
Document, notwithstanding the foregoing:
i. X A Participant who terminates
--- before the end of the period
for which contributions are
allocated shall share in the
allocation of Employer Matching
Contributions if termination of
employment was the result of
(select all that apply):
(a) X retirement
---
(b) X disability
---
(c) X death
---
(d) X other, as
--- specified
below:
Other
termination of
employment
from the
company on
account of a
Change of
Control, as
defined in the
addendum
attached
hereto.
ii._X_ Employer Matching Contributions
--- shall be allocated to the
accounts of Participants
(select one): Only allocated to
those Participants who are
employed on the last day of the
Plan Year.
(a) as of each pay
--- period for
which a
contribution
was made
pursuant to a
Salary
Reduction
Agreement.
(b) semi-monthly.
---
(c) as of the last
--- day of the
month
preceding the
month in which
the
contribution
was made.
(d) as of the last
--- day of the
Plan quarter
preceding the
quarter in
which the
contribution
was made.
(e) X as of the last
--- day of the
Plan year.
iii. X If selected, the Employer may
--- make Employer Matching
Contributions without regard to
current or accumulated Net
Profits of the Employer for the
taxable year ending with, or
within the Plan Year .
d. The percentage of a Participant's Employer
Matching Contribution Account (attributable
to Employer Matching Contributions) to be vested
in him or her upon termination of employment
prior to attainment of the Plan's Normal
Retirement Date shall be :
Completed Years of Service
1 2 3 4 5 6 7
------- ------- ------- ------- ------- ------- ----
0% 100%
-- ----
0% 0% 100%
-- -- ----
0% 20% 40% 60% 80% 100%
-- --- --- --- --- ----
0% 0% 20% 40% 60% 80% 100%
-- -- --- --- --- --- ----
10% 20% 30% 40% 60% 80% 100%
--- --- --- --- --- --- ----
Vi X 0% 40% 60% 80% 100%
-- --- --- --- ----
0% 0% 0% 0% 0% 0% 100%
-- -- -- -- -- -- ----
Full and immediate vesting upon entry into the Plan
---
Notwithstanding anything to the contrary
in the Plan, the amount inserted in the
blanks above shall not exceed the limits
specified in Code ss.411(a)(2).
e. Notwithstanding the provisions of this Item
C(4)(e) of the Adoption Agreement, a Participant
shall become fully vested in his Participant's
Employer Matching Contribution Account if :
i. the Participant's job is
--- eliminated without the
Participant being offered a
comparable position elsewhere
with the Employer.
ii. for such reason as is described
--- below:
f. Corrective Contributions:
i. X If selected, the Employer shall
--- be authorized to make Qualified
Matching Contributions, subject
to the terms of the Basic Plan
Document, in an amount
determined by resolution of the
Board of Directors on an annual
basis.
ii. X If selected, the Employer shall
--- be authorized to make Qualified
Nonelective Contributions,
subject to the terms of the
Basic Plan Document, in an
amount determined by resolution
of the Board of Directors on an
annual basis.
5. Gap Earnings:
If selected, Gap Earnings, as defined
--- inss.3.2(G)(1) of the Basic Plan Document,
will be calculated for Excess Elective
Deferrals, Excess Contributions and Excess
Aggregate Contributions, and refunded to the
Participant as provided for in Article III
of the Basic Plan Document.
6. Forfeitures:
a. Forfeitures of amounts attributable to Employer
Matching Contributions shall be reallocated as of:
i. X the last day of the Plan Year in
--- which the Forfeiture occurred.
ii. the last day of the Plan Year
--- following the Plan Year in which
the Forfeiture occurred.
iii. the last day of the Plan Year in
--- which the Participant suffering
the Forfeiture has incurred the
fifth consecutive One Year Break
in Service.
b. Forfeitures of Employer Matching Contributions shall
be reallocated as follows:
i. Not applicable as Employer Matching
--- Contributions are always 100% vested
and nonforfeitable.
ii. X Used first to pay the expenses of
--- administering the Plan, and then
allocated pursuant to one of the
following two options:
iii. Forfeitures shall be allocated to
--- Participant's accounts in the same
manner as Employer Profit Sharing
Contributions, Employer Matching
Contributions, Qualified Nonelective
Contributions or Qualified Matching
Contributions, in the discretion of
the Employer, for the year in which
the Forfeiture arose.
iv. X Forfeitures shall be applied to
--- reduce the Employer Profit Sharing
Contributions, Employer Matching
Contributions, Qualified Nonelective
Contributions or Qualified Matching
Contributions, in the discretion of
the Employer, for the Plan Year
following the Plan Year in which the
Forfeiture arose.
c. Forfeitures of Excess Aggregate Contributions shall
be:
i. X Applied to reduce Employer
--- contributions for the Plan Year
in which the excess arose, but
allocated as below, to the
extent the excess exceeds
Employer contributions for the
Plan Year, or the Employer has
already contributed for such
Plan Year.
ii. X Allocated after all other
--- forfeitures under the Plan:
(a) X to the
--- Matching
Contribution
account of
each
Non-highly
Compensated
Participant
who made
Before Tax
Contributions
or After Tax
Contributions
in the ratio
which each
such
Participant's
Compensation
for the Plan
Year bears to
the total
Compensation
of all such
Participants
for the Plan
Year; or,
(b) to the
--- Matching
Contribution
account of
each
Non-highly
Compensated
Eligible
Participant in
the ratio
which each
Eligible
Participant's
Compensation
for the Plan
Year bears to
the total
Compensation
of all
Eligible
Participants
for the
Plan Year.
7. In-Service Distributions (select as may be appropriate):
(a) There shall be no in-service
--- distribution of Participant account
balances derived from Before Tax
Contributions (including Qualified
Nonelective Contributions and Qualified
Matching Contributions treated as Before
Tax Contributions under the terms of the
Basic Plan Document), or Employer
Matching Contributions.
b. X Participants may request an in-service
--- distribution of their account balance
attributable to Employer Matching
Contributions, for the following
reasons:
i. X For purposes of
--- satisfying a financial
hardship, as
determined in
accordance with the
uniform
nondiscriminatory
policy of the
Committee;
ii X Attainment of age
--- 59 1/2 by the
Participant; or
iii Attainment of the
--- Plan's Normal
Retirement Date by the
Participant.
c. X Participants may request an in-service
--- distribution of their account balance
attributable to Employee Before Tax
Contributions, for the following
reasons:
i. For purposes of
--- satisfying a financial
hardship, as
determined by the
facts and
circumstances of an
Employee's situation,
in accordance with the
provisions of ss.3.9
of the Basic Plan
Document;
ii X For purposes of
--- satisfying a financial
hardship, using the
"safe harbor"
provisions of ss.3.9
of the Basic Plan
Document.
iii X Attainment of age
--- 59 1/2 by the
Participant; or
iv. Attainment of the
--- Plan's Normal
Retirement Date
by the Participant.
NOTICE: The adopting Employer may not rely on an opinion letter issued by
the National Office of the Internal Revenue Service as evidence that the
Plan is qualified under the provisions of ss.401 of the Internal Revenue
Code. In order to obtain reliance with respect to the Plan's qualification,
the Employer must apply to the Key District Office of the Internal Revenue
Service for a determination letter.
This Adoption Agreement may only be used in conjunction with Basic Plan
Document # 05.
This Plan document may only be used under the express authority of KeyCorp,
its subsidiaries and affiliates, and is not effective as completed until
executed by a duly authorized officer of KeyCorp, one of its subsidiaries
or affiliates, and approved by KeyCorp's counsel.
KeyCorp, as sponsor, may amend or discontinue this prototype plan document
upon proper notification to all adopting Employers pursuant to Revenue
Ruling 89-13.
Failure to properly fill out an Adoption Agreement may result in
disqualification of the Plan, and adverse tax consequences to the Employer
and Plan Participants.
This Plan is sponsored by:
KeyCorp, on behalf of its operating subsidiaries, banking and trust
company affiliates
000 Xxxxxx Xxxxxx
Xxxxxxxxx, Xxxx 00000
(000) 000-0000
In Witness Whereof, the Employer and the Trustee, by their respective
duly authorized officers, have caused this Adoption Agreement to be
executed on this 1st day of July, 1999.
--- ---- ----
Employer: M.D.C. Holdings, Inc.
---------------------
By: /s/ Xxxxxx X. Xxxxx
-----------------------------
Title: Secretary
--------------------------
Trustee: KeyTrust Company National Association
-------------------------------------
By: /s/
-----------------------------
Title: Assistant Vice President
--------------------------
and
By: /s/
-----------------------------
Title: Vice President
--------------------------
Approved on Behalf of Trustee:
Initials: CMA Date: 1/29/99
--------------------- ----------------
Investment Fund Designation
M.D.C. Holdings, Inc. (the "Named Fiduciary"), as an independent fiduciary with
respect to the M.D.C. Holdings, Inc. 401(k) Savings Plan (the "Plan"), an
employee pension benefit plan covered by the applicable provisions of the
Employee Retirement Income Security Act of 1974, as amended ("ERISA") and its
employees who participate therein (the "Participants"), hereby designates the
following investment funds from among the investment fund options available for
adopting employers of the PRISM(R) Prototype Retirement Plan & Trust (as defined
in ss.10.7 of the Plan), available for selection by Participants for the
investment of Plan assets held for their benefit:
(a) EB MaGIC(R) Fund
(b) Fidelity Advisor Growth Opportunities Fund: Class T
(c) Invesco Dynamics
(d) Xxxxxxxxx & Xxxxxx Genesis - Assets
(e) The American Funds Group(R): EuroPacific Growth Fund
(f) The American Funds Group(R): The Bond Fund of America
(g) The American Funds Group(R): The Income Fund of America
(h) The American Funds Group(R): Washington Mutual Investors Fund
(i) The Victory Stock Index Fund
(j) M.D.C. Holdings Inc. Common Stock
(k)
(l)
(m)
The plan assets are currently invested in the funds more fully described
below (Existing Funds). The Named Fiduciary further designates that assets
held in each of the Existing Funds by the Plan prior to liquidation and
transfer to the Trustee shall be reinvested in the PRISM(R) Fund(s) as
specified below:
Existing Funds: PRISM(R) Funds:
(a)Guranteed Short Term Fund (a) EB MaGIC(R) Fund
(b)Guranteed Long Term Fund (b) EB MaGIC(R) Fund
(c)Cigna Balanced Fund (c) The American Funds Group(R): The Income
Fund of America
(d)Fidelity Advisor Balanced Fund (d) The American Funds Group(R): The Income
Fund of America
(e)Stock Market Index Fund (e) The Victory Stock Index Fund
(f)Fidelity Advisor Growth Opportunities Fund (f) Fidelity Advisor Growth Opportunities
Fund: Class T
(g)M.D.C. Holdings Inc. Common Stock (g) M.D.C. Holdings Inc. Common Stock
Fund
(h) (h) Invesco Dynamics
(i) (i) Xxxxxxxxx & Xxxxxx Genesis - Assets
(j) (j) The American Funds Group(R):
EuroPacific Growth Fund
(k) (k) The American Funds Group(R): The Bond
Fund of America
(l) (l) The American Funds Group(R): Washington
Mutual Investors Fund
(m) (m) M.D.C. Holdings Inc. Common Stock
X. In addition, if selected, an Employer Stock Fund will also be available.
In making the selection of Investment Funds, and in designating the
PRISM(R) Funds into which the liquidated assets from each of the Existing
Funds will be invested in, the Named Fiduciary hereby confirms and
acknowledges that:
The Named Fiduciary has had made available to it copies of the
prospectuses (to the extent required under applicable federal
securities law and regulation) for each investment fund
available for selection by adopting employers of the PRISM(R)
Prototype Retirement Plan & Trust, and has received copies of
each such prospectus for the Investment Funds selected; The
Named Fiduciary acknowledges that the Trustee of the Plan may
receive certain fees for services provide to, or on behalf of
an Investment Fund, or the sponsors or distributors thereof,
pursuant to plans of distribution adopted by the fund under
the provisions of Rule 12b-1 of the Investment Company Act of
1940, and further acknowledges that (i) such fee, if paid, is
appropriate for services rendered to the fund, and when
aggregated with other fees for service payable to the Trustee
constitutes reasonable compensation for the Trustee's services
to the Plan; and (ii) the Plan will be able to redeem its
interest in any such Investment Fund on reasonably short
notice without penalty; The Named Fiduciary further
acknowledges that it has selected the Investment Funds on its
determination, after due inquiry, that the Investment Funds
are appropriate vehicles for the investment of Plan assets
pursuant to the terms of the Plan, considering all relevant
facts and circumstances, including but not limited to (i) the
investment policy and philosophy of the Named Fiduciary
developed pursuant to ERISA ss.404; (ii) the ability of
Participants, using an appropriate mix of Investment Funds, to
diversify the investment of Plan assets held for their
benefit; and, (iii) the ability of Participants to, utilizing
an appropriate mix of Investment Funds, to structure an
investment portfolio within their account in the Plan with
risk and return characteristics within the normal range of
risk and return characteristics for individuals with similar
investment backgrounds, experience and expectations; and, The
Named Fiduciary acknowledges that it has not relied on any
representations or recommendations from the Trustee or any of
its employees in selecting the Investment Funds, or in
specifying which of the selected PRISM(R) Funds into which the
liquidated assets from each of the Existing Funds will be
invested.
The Trustee agrees to follow the Named Fiduciary's direction with respect
to offering the Investment Funds available for selection by the
Participants in the Plan for the investment of Plan assets held for their
benefit:
In Witness Whereof, the Employer, by its duly authorized
representative, has executed this document in connection with adoption of
the Plan utilizing the PRISM(R) Prototype Retirement Plan & Trust
documents, as provided by the Trustee.
Named Fiduciary: M.D.C. Holdings, Inc.
---------------------
By: Xxxxxx X. Xxxxx
-----------------------------
Title: Secretary
-----------------------------
Footnotes in this Adoption Agreement are not to be
construed as part of the Plan provisions but are explanatory
only. To the extent a footnote is inconsistent with the
provisions of the Basic Plan Document or applicable law,
the provisions of the Plan shall be construed in conformity
with the Basic Plan Document or law.
Terms that are capitalized are defined in the PRISM(R)
Prototype Retirement Plan & Trust Basic Plan Document.
The Plan will have an individual TIN, distinct from the
Employer TIN.
Committee members direct the day to day operation of the
Plan. Committee members serve at the pleasure of the
Employer. See ss.11.4 for changes in Committee membership.
If no Committee members are specified, the Employer shall
assume responsibility for the operations of the Plan.
If no amount is specified, the maximum amount of
Compensation allowed under Code ss.401(a)(17)(the "$150,000
limit" ("$200,000 limit" prior to the Plan Year beginning
before January 1, 1994)), as adjusted from time to time,
shall be used.
If a fractional year is elected, the elapsed time method
of computing service shall be used for the fractional year.
Eligibility provisions for optional cash or deferred
arrangements are contained in Item C of this Adoption
Agreement.
Notwithstanding the foregoing, an Employee who has met the
eligibility requirements may not enter the Plan later than
six months following the date on which the Employee first
completes the eligibility requirements.
Notwithstanding the selection made in this Item B(7)(a),
a participant shall be fully vested in his or her Employer
Contribution Accounts if the Participant dies or becomes
Disabled while in the employ of the Employer.
If more than one Year of Service is an eligibility
requirement, Item viii must be selected.
The provisions of this section will be administered by the
Employer on a consistent and nondiscriminatory basis.
Amounts designated as Qualified Nonelective Contributions
will be allocated pursuant to ss.3.1(A)(14) of the Basic
Plan Document.
In the event contributions are allocated on a basis other
than a full plan year, the Year of Service shall be based on
the elapsed time method of calculation, and a Participant
shall be deemed to have completed an appropriate Period of
Service for allocation purposes if the Participant has
completed a pro-rata Period of Service corresponding to the
interval on which contributions are allocated.
Excess Compensation means a Participant's Compensation in
excess of the Permitted Disparity Level specified in the
Definitions section of this Adoption Agreement.
Even if this Item is selected, the provisions of ss.4.8 of
the Basic Plan Document may supersede this requirement if
necessary to satisfy Code Sections 401(a)(26) and 410(b).
If this option is selected, iii or iv must be selected to
reallocate Forfeitures of Employer Profit Sharing
Contributions remaining after expenses of administering the
Plan have been paid.
This Item is for use in identifying collective trust funds,
which, pursuant to Revenue Ruling 81-100 must be
specifically referenced in the Plan. Actual Investment Funds
are referenced on the Investment Fund Designation form
attached to this Adoption Agreement.
If this option is selected, the Employer must establish
appropriate procedures for implementation of the Plan's loan
program.
The date specified is for the refund of amount deferred in
excess of the Code ss.402(g) limit (the $7,000 limit) for
the Participant's taxable year.
The Employer shall have the right to designate all, or any
portion of Employer Matching Contributions as Qualified
Matching Contributions, which shall then be subject to the
same vesting, distribution, and withdrawal restrictions as
Before Tax Contributions.
Net Profits will never be required for the contribution of
Before Tax Contributions, After Tax Contributions, Qualified
Nonelective Contributions or Qualified Matching
Contributions.
Notwithstanding anything in the Adoption Agreement to the
contrary, amounts in a Participant's account attributable to
Before Tax Contributions, Qualified Nonelective
Contributions, and Qualified Matching Contributions shall be
100% vested and nonforfeitable at all time.
Notwithstanding the selection made in this item B(7)(b), a
Participant shall be fully vested in his or her Employer
Contribution Accounts if the Participant dies or becomes
Disabled while in the employ of the Employer.
The provisions of this section will be administered by the
Employer on a consistent and nondiscriminatory basis.
